Deputy rules out higher VAT rate and introduction of bank debit tax

The Venezuelan Parliament is to delve into the sale of US dollars via the extinct Transaction System for Foreign Currency Denominated Securities (Sitme)

Chair of the Parliament's Financial Committee Ricardo Sanguino stressed that a paper on the Venezuelan tax reform will be completed "sooner than later" (File photo)

MAYELA ARMAS H.| EL UNIVERSAL

Wednesday February 20, 2013 01:14 PM

Chair of the Parliament's Financial Committee Ricardo Sanguino stated that the economic measures to be announced soon in Venezuela will be oriented towards strengthening production activities.

In his statement, Sanguino also ruled out any increase in the value added tax rate and the application of further taxes, such as the bank debit tax.

Early this week, Venezuelan Vice-President Nicolás Maduro stressed that the Government would take economic steps, including a reform on the Food Law and other moves related to the regulations of the Labor Law. Maduro did not hint any other actions.

Sanguino ruled out any immediate change in some of the current taxes, yet he underscored that the Finance Ministry and the Parliament are working on a fiscal reform.

He stated, "There is an ad hoc team of the (Finance) Ministry working on different areas of the fiscal policy. A report will be produced sooner than later."

Asked whether the reform included a revision of current taxes and the inclusion of new ones, Sanguino said, "Economic policies are not rigid. They are designed and implemented, then evaluated, and later you adopt new ones or keep those currently enforced."

Moreover, Sanguino explained that the fiscal reform will extend to public expenditure and outlined that government spending efficiency would be tested. "It is compelling to be more efficient in the management of the processes." The idea is assessing the execution of ordinary expenditure as well as the National Development Fund and the Chinese Fund.

Sanguino added that the Parliament is to delve into the sale of US dollars via the extinct Transaction System for Foreign Currency Denominated Securities (Sitme) to find out whether the money has been properly used by entrepreneurs.

Translated by Jhean Cabrera

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Hundreds of thousands of demonstrators took to the streets of Brazil on March 13 to demand the ouster of embattled President Dilma Rousseff, carrying banners expressing anger at bribery scandals and economic woes. A banner read "We don't want a new Venezuela in Brazil."